Pub. 1 2024 Issue 1

2024 Louisiana Regular Legislative SessionMarch 11-June 3 LADA Dealer Day at the CapitolApril 9 85th Annual LADA ConventionJune 19-23The Greenbrier, West Virginia 26th Annual LADA Golf TournamentOctober 15University Club, Baton Rouge Future Convention DatesJune 10-15, 2025June 17-21, 2026 Learn more at www.lada.org.

As we sit in Q-1 of 2024, it’s become very clear that the landscape in our industry has drastically changed and changed quickly! In 2023, we witnessed inflation, interest rates topping a 20-year high and global conflicts, which add up to economic uncertainty for the consumer. We watched as our front gross eroded, expenses increased, the used car market dropped and inventory was swiftly on the way. All this on the heels of the best, and may I say, easiest three years in the history of the automotive business. Everyone made a lot of money with little effort. During a recent conversation with a Baton Rouge dealer, he shared words that are indicative of where we stand: “Our guys got sloppy. We forgot how to sell; it was too easy, and now we are in a pinch.” We are back to the grind that we know as the car business! So, what should we do?

PLATINUM Group 1 AutomotiveKenworth of LouisianaLake Charles ToyotaLanders Dodge Chrysler JeepTommy HarveyShreveport Bossier New Car Dealers AssociationPrice LeBlanc Auto Group GOLD Alford Motors Inc. Arceneaux Ford Inc.Baton Rouge New Car Dealers AssociationDantin ChevroletFoy Chevrolet Buick GMCGiles NissanHarper Chevrolet GMCHebert’s Town & Country Dodge Chrysler JeepHonda of CovingtonHollingsworth Richards FordMike HarperRalph Sellers Motor CompanyRichards HondaTrapp Cadillac

Delivering a superior service experience is the goal of every business. To achieve this goal, dealers must build a service experience that is both efficient and friendly. Achieving this balance can be difficult, but with the help of some fantastic technology, it’s not impossible. In this article, we will explore the steps necessary to create a consumer-friendly service experience that is also efficient.

If you haven’t heard, the FTC has paused the Combating Auto Retail Scams Rule (CARS) Rule which is also known as the Vehicle Shopping Rule. Let’s review what has happened so far, the scenarios that can play out, and the steps dealers should take going forward.

The FTC’s newly announced Vehicle Shopping Rule has been a hot topic for dealers since it was announced in December. The Rule will have a profound impact on dealership advertising, sales and financing strategies prior to its effective date of July 30, 2024. The penalties for violating the Rule are steep. Violations of the Rule constitute unfair and deceptive acts and practices under Section 5 of the FTC ACT, and the FTC can impose penalties of $50,120 per violation.

Internal Revenue Code (IRC) Section 30D provides a tax credit with respect to each new clean vehicle that a taxpayer purchases and places in service. Section 30D has been amended several times, most recently by the Inflation Reduction Act of 2022 (the IRA). The discussion of credits for qualified previously owned or used clean vehicles under IRC §25E is beyond the scope of this article.

Register at www.lada.org.

As chairwoman of the board, I am honored to continue serving alongside such a dedicated and accomplished group of individuals. Together, we have achieved remarkable milestones, and I am eager to build upon our collective success.